Border carbon adjustment (BCA) is a policy measure that aims to address the potential negative impacts of carbon pricing policies on domestic manufacturing industries by leveling the playing field between domestic producers who are subject to carbon pricing and foreign producers who are not. It is not a stand-alone policy; it is supposed to be an accompaniment to carbon pricing, and it looks very different depending on the type of carbon pricing it accompanies.
IISD’s “Border Carbon Adjustments: Pivotal design choices for policy-makers” policy brief looks through the pivotal choices in the design of BCA, as well as the impact that each choice might have and the trade-offs that each might entail, aiming to provide useful insights to policy-makers and set the ground for the broader international discussions about best practices when crafting such instruments.
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